The Life Cycle of Financial Planning

Personal Finance – The Life Cycle of Financial Planning:


An understanding of finance is key to successful investing. Personal Finance – Turning Money Into Wealth (6th Edition) identifies the Life Cycle of Financial Planning:

There are three stages in the financial life cycle: (1) the early years— a time of wealth accumulation, (2) approaching retirement— the golden years, and (3) the retirement years.

Stage 1: The Early Years – The first stage can be decades long and centers on the accumulation of wealth.

Stage 2: Approaching Retirement
During the second phase, financial goals shift to capital preservation, continued growth of the wealth accumulated and estate planning.

Stage 3: The Retirement Years – During retirement you’re no longer saving, you’re spending. However you must allow for growth in your savings to keep inflation from eating it away.

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